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1791 Bank of the US
-The Bank of the US received a charter in 1791 from congress; signed by president Washington]
-this bank collected fees and made payments on behalf of the federal government
-bank went away because state banks opposed it; thought it gave too much power to national government -
1816 Second Bank of the US
-Second Bank of the US was charted in 1816
-failed because it didn't regulate state banks or charter any other bank
-State banks were issuing their own currency
-Federal government didn't print paper currency until the Civil War -
National Banking Act
Two United States federal laws that established a system of national charters for banks(the United States national banks).
-Banks could have a state or federal charter -
Federal Reserve Act
-Created the current Federal Reserve System
-Intended to establish a form of economic stability
-National bank introduced -
Great Depression (regarding banking)
-Great Depression (regarding banking):1929-1939
-Great Depression caused banks to collapse
-Franklin D. Rosevelt declared a "bank holiday" where banks closed
-only allowed to reopen if they proved they were financially stable
-Glass-Steagal Banking Act
-established the Federal Deposit Insurance corporation(ensures that if a bank goes under, you still have your money). -
1970’s (regarding banking)
Congress relaxes restrictions on banks -
1982 (regarding banking)
Congress allows S&L banks to make high risks loans and investments
-investments went bad
-banks failed
-federal governmnet had to give investors their money back -
Gramm-Leach-Bliley Act
-Allows banks to have more control over banking, insurance and securities
-Cons:
-less competition
-may form a universal bank
-may lead to more sharing of information
-reduction of privacy
